Protection industry paid out £3.1bn in 2013
Data published by the Association of British Insurers (ABI) shows the protection industry paid out a total of £3.1 billion across critical illness and income protection insurance policies during 2013.
The average claim paid for individual income protection policies for those unable to work was £11,500 paying out while the typical pay-out on a term life insurance policy was £51,500 with 98.4% of claims being paid.
Helen White, the ABI’s head of protection, said: “The insurance industry pays out £8.4m every day in individual life, critical illness and income protection insurance claims. This makes a real difference to people’s lives at some of the most difficult of times with 97% of all claims paid in 2013.”